Topic 2 Thinking Like an Economist

THE ECONOMIST AS SCIENTIST

1. Economists, like mathematicians, physicists, and biologists,

a. make use of the scientific method.

tính khách quan
b. try to address their subject with a scientist’s objectivity.

c. devise theories, collect data, and then analyze these data in an attempt to verify or refute their
theories.

d. All of the above are correct.

giả định được coi

2. For an economist, the idea of making assumptions is regarded generally as a

a. bad idea, since doing so leads to the omission of important ideas and variables from economic
models.

b. bad idea, since doing so invariably leads to data-collection problems.

c. good idea, since doing so helps to simplify the complex world and make it easier to
understand.

d. good idea, since economic analysis without assumptions leads to complicated results that the
general public finds hard to understand.

3. Economists make assumptions to

a. provide issues for political discussion.

b. make a complex world easier to understand.

c. make it easier to teach economic concepts and analysis.

d. create policy alternatives that are incomplete or subject to criticism.

4. A circular-flow model and production possibilities frontier are similar in that

a. neither allows economic analysis to occur.

b. neither can be represented visually on a graph.

c. both make use of assumptions.

d. both make use of complex equations to arrive at solutions.

5. When studying the effects of public policy changes, economists

a. always refrain from making assumptions.

b. sometimes make different assumptions about the short run and the long run.
xem xét trực tiếp
c. consider only the direct effects of those policy changes and not the indirect effects.

d. consider only the short-run effects of those policy changes and not the long-run effects.
 chính sách
6. A model can be accurately described as a
trừu tượng
a. theoretical abstraction with very little value.

b. device that is useful only to the people who created it.

c. realistic and carefully constructed theory. xây dựng lý thuyết thực tế và cẩn thận

d. simplification of reality.

7. In building economic models, economists often omit bỏ sót

a. assumptions. giả định

b. theories. lý thuyết

c. details. thông tin chi tiết

d. equations. sự cân bằng

8. Which of the following statements about economic models is correct?

a. Economic models are built to mirror reality exactly.

b. Economic models are useful, but they should not be used for the purpose of improving public
policies.

c. Because economic models omit many details, they allow us to see what is truly important.
hiếm khi
d. Economic models seldom incorporate equations or diagrams.
kết hợp

9. Economic models

a. cannot be useful if they are based on false assumptions.

b. were once thought to be useful, but that is no longer true.

c. must incorporate all aspects of the economy if they are to be useful.

d. can be useful, even if they are not particularly realistic.

10. Which of the following is not correct about most economic models?
phương trình
a. They are composed of equations and diagrams. sơ đồ

b. They contribute very little to economists’ understanding of the real world.

bỏ qua tính năng
c. They omit many features of the real-world economy.
xây dựng
d. In constructing models, economists make assumptions.
11. Which of the following statements is correct?
rất ít kết hợp
a. Few economic models incorporate assumptions.

b. Different economic models employ different sets of assumptions.

c. Good economic models attempt to mimic reality as closely as possible.

d. Economic models, to be accepted, must be tested by conducting experiments.

12. The circular-flow diagram is an example of

a. a laboratory experiment.

b. an economic model.

c. a mathematical model.

d. All of the above are correct.

13. A circular-flow diagram is a model that

a. helps to explain how participants in the economy interact with one another.

b. helps to explain how the economy is organized.

c. incorporates all aspects of the real economy.

d. Both (a) and (b) are correct.

14. In the circular-flow diagram, firms produce

a. goods and services using factors of production.

b. output using inputs.

c. factors of production using goods and services.

d. Both (a) and (b) are correct.

15. Factors of production are

a. used to produce goods and services.

b. also called output.

dồi dào
c. abundant in most economies.

d. assumed to be owned by firms in the circular-flow diagram.

16. In the circular-flow diagram, which of the following is not a factor of production?

a. labor

b. land

c. capital

d. money
17. Another term for factors of production is

a. inputs.

b. output.

c. goods.

d. services.
vốn
18. In economics, capital refers to

a. the finances necessary for firms to produce their products.

b. buildings and machines used in the production process.

c. the money households use to purchase firms' output.

cổ phiếu
d. stocks and bonds.
trái phiếu

19. In the simple circular-flow diagram, households

a. are the only decision makers.

b. own the factors of production.

c. are buyers of inputs.

d. consume only some of the goods and services that firms produce.

20. In the markets for goods and services in the circular-flow diagram,

a. households and firms are both buyers.

b. households and firms are both sellers.

c. households are buyers and firms are sellers.

d. households are sellers and firms are buyers.

21. In the markets for goods and services in the circular-flow diagram,

a. households provide firms with savings for investment.

b. households provide firms with labor, land, and capital.

c. firms provide households with output.

d. firms provide households with profit.

22. In the markets for the factors of production in the circular-flow diagram,

a. households are sellers and firms are buyers.

b. households are buyers and firms are sellers.

c. households and firms are both buyers.

d. households and firms are both sellers.

 giao dịch
23. Which of the following transactions does not take place in the markets for factors of production in the circular-
flow diagram?
hợp đồng thuê
a. a landowner leases land to a farmer
thu hoạch
b. a farmer hires a teenager to help with harvest
công ty xây dựng xe tải
c. a construction company rents trucks for its business

d. a woman buys corn for dinner

Figure 2-1

24.Refer to Figure 2-1. Which arrow represents the flow of goods and services?

a. A

b. B

c. C

d. D

25. Refer to Figure 2-1. Which arrow represents the flow of spending by households?

a. A

b. B

c. C

d. D

26. Refer to Figure 2-1. Which arrow represents the flow of land, labor, and capital?

a. A

b. B

c. C

d. D
27. Refer to Figure 2-1. Which arrow represents the flow of income payments?

a. A

b. B

c. C

d. D

28. Refer to Figure 2-1. Ali buys a new pair of shoes at a shoe store. To which of the arrows does this transac-
tion directly contribute?

a. A only

b. A and B

c. C only

d. C and D

29. Refer to Figure 2-1. Sonia completes her first week of employment working as a hairdresser at a salon. On
Friday of that week, she receives her first paycheck. To which of the arrows does this transaction directly con-
tribute? tiền lương

a. B only

b. A and B

c. C only

d. C and D

30. The production possibilities frontier is a graph that shows the various combinations of output that an economy
can possibly produce given the available factors of production and

a. society’s preferences.

b. the available production technology.

c. a fair distribution of the output.

d. the available demand for the output.

31. The production possibilities frontier is a graph that shows the various combinations of output that an economy

a. should produce.

b. wants to produce.

b can produce.

d. demands.

32. When constructing a production possibilities frontier, which of the following assumptions is not made?
 a. The economy produces only two goods or two types of goods.

b. Firms produce goods using factors of production.

c. The technology available to firms is given.

d. The quantities of the factors of production that are available are increasing over the relevant
time period. Yếu tố sản xuất sẵn có tăng lên trong một khoảng thời gian

Bất kỳ thể hiện

33. Any point on a country's production possibilities frontier represents a combination of two goods that an econ-
omy

a. will never be able to produce.

b. can produce using all available resources and technology.

một phần
c. can produce using some portion, but not all, of its resources and technology.

d. may be able to produce in the future with more resources and/or superior technology.

34. Where can an economy not produce?

a. inside its production possibilities frontier trong đường giới hạn

b. on its production possibilities frontier trên đường

c. outside its production possibilities frontier

d. at the endpoints of its production possibilities frontier

điểm cuối

35. Production is efficient if the economy is producing at a point

a. on the production possibilities frontier.

b. outside the production possibilities frontier.

c. on or inside the production possibilities frontier.

d. inside the production possibilities frontier.

36. If an economy is producing efficiently, then

a. there is no way to produce more of one good without producing less of another good.

b. it is possible to produce more of both goods without increasing the quantities of inputs that are
being used.

c. it is possible to produce more of one good without producing less of another good.

d. it is not possible to produce more of any good at any cost.

vận hành
37. When an economy is operating at a point on its production possibilities frontier, then

a. consumers are content with the mix of goods and services that is being produced.

b. there is no way to produce more of one good without producing less of the other.

c. equal amounts of the two goods are being produced.

d. All of the above are correct.

 minh họa
38. Efficiency is illustrated by

a. both the production possibilities frontier and the circular-flow diagram.

b. neither the production possibilities frontier nor the circular-flow diagram.

c. the production possibilities frontier only.

d. the circular-flow diagram only.

39. Suppose a nation is currently producing at a point inside its production possibilities frontier. We know that
vượt quá khả năng
a. the nation is producing beyond its capacity, so inflation will occur.

b. the nation is not using all available resources or is using inferior technology or both.

c. the nation is producing an efficient combination of goods.

d. there will be a large opportunity cost if the nation tries to increase production of any good.

vòng cung giải thích

40. The bowed shape of the production possibilities frontier can be explained by the fact that

a. all resources are scarce.

b. economic growth is always occurring.

tính theo hàng hóa kia
c. the opportunity cost of one good in terms of the other depends on how much of each good the
economy is producing.

d. the only way to get more of one good is to get less of the other.

Table 2-3

Production Possibilities for Libraryland

Books Magazines

400 0

300 200

200 350

100 450

0 500

41. Refer to Table 2-3. What is the opportunity cost to Libraryland of increasing the production of books from
200 to 300?

a. 100 magazines

b. 150 magazines

c. 200 magazines

d. 350 magazines
 42. Refer to Table 2-3. Which of the following statements is correct?

a. The opportunity cost of an additional 100 books is constant at 50 magazines.

b. The opportunity cost of an additional 100 books is constant at 100 magazines.

đường thẳng dốc xuống
c. Libraryland’s production possibilities frontier is a straight, downward-sloping line.

d. The opportunity cost of an additional 100 books increases as more books are produced.
chi phí cơ hội của 100 cuốn sách tăng lên khi có nhiều sách được sản xuất hơn
Figure 2-4
lamps
50

45

40

35
V
30

25
Z
20

15
W Y
10

10 20 30 40 50 60 70 80 notepads

dành
43. Refer to Figure 2-4. If this economy devotes all of its resources to the production of notepads, then it will
produce

a. 0 notepads and 40 lamps.

b. 35 notepads and 20 lamps.

c. 70 notepads and 0 lamps.

d. 70 notepads and 40 lamps.

44. Refer to Figure 2-4. It is possible for this economy to produce

a. 40 notepads and 20 lamps.

b. 50 notepads and 30 lamps.

c. 70 notepads and 40 lamps.

d. All of the above.

45. Refer to Figure 2-4. It is not possible for this economy to produce at point

a. V.

b. W.

c. Y.

d. Z.
46. Refer to Figure 2-4. This economy cannot currently produce 30 notepads and 45 lamps because

a. some of its resources are unemployed.

sự thiếu hiệu quả tồn tại
b. inefficiencies exist in this economy’s production process.

c. given its current technology, it does not have the resources to produce that level of output.

d. All of the above are correct.

47. Refer to Figure 2-4. Suppose this economy is producing at point W. Which of the following statements
would best explain this situation?
thiếu mong muốn
a. The economy lacks the resources to produce at a more desirable point.
ngăn
b. The economy’s available technology prevents it from producing at a more desirable point.

c. There is widespread unemployment in the economy.

d. Any of the above statements would be a legitimate explanation for this situation.

48. Refer to Figure 2-4. Efficient production is represented by which point(s)?

a. Y, Z

b. W, Y, Z

c. V, Y, Z

d. V

49. Refer to Figure 2-4. Inefficient production is represented by which point(s)?

a. Y, Z

b. V

c. V, W

d. W

50. Refer to Figure 2-4. The opportunity cost of this economy moving from point Z to point Y is

a. 0 lamps.

b. 10 lamps.

c. 10 notepads.

d. 20 lamps.
 51. Refer to Figure 2-4. The opportunity cost of obtaining 20 additional lamps by moving from point W to point
V is

a. 0 notepads.

b. 10 notepads.

c. 50 notepads.

d. None of the above; the economy cannot move from point W to point V.

52. Refer to Figure 2-4. The opportunity cost of obtaining 10 additional lamps by moving from point W to point
Z is

a. 0 notepads.

b. 10 notepads.

c. 50 notepads.

d. None of the above; the economy cannot move from point W to point Z.

Figure 2-10

books

DVDs

53. Refer to Figure 2-10. Which of the following events would explain the shift of the production possibilities
frontier from A to B?
công dân
a. The economy’s citizens developed an enhanced taste for books.

b. The economy experienced a technological advance in the production of books.

c. More capital became available in the economy.

d. More labor became available in the economy.

54. Refer to Figure 2-10. The shift of the production possibilities frontier from A to B illustrates
đồng thời
a. simultaneous technological advances in the book and DVD industries.
phân bổ
b. a reallocation of resources away from the production of DVDs and toward the production of books.

c. economic growth.

d. All of the above are correct.

Figure 2-11
capital
goods

A B
consumer
goods

55. Refer to Figure 2-11. Which of the following would most likely have caused the production possibilities
frontier to shift outward from A to B?

a. a decrease in unemployment

b. a technological advance in the consumer goods industries

c. a general technological advance

d. an increase in the availability of capital-producing resources

56. Refer to Figure 2-11. The shift of the production possibilities frontier from A to B can best be described as
suy thoái
a. a downturn in the economy.

b. economic growth.

c. an enhancement of equality.
cải thiện phân bổ
d. an improvement in the allocation of resources.

lĩnh vực lĩnh vực lớn

57. The field of economics is traditionally divided into two broad subfields,

a. national economics and international economics.

b. consumer economics and producer economics.

khu vực
c. private sector economics and public sector economics.

d. microeconomics and macroeconomics.

58. Microeconomics is the study of

a. how money affects the economy.

b. how individual households and firms make decisions.

c. how government affects the economy.

d. how the economy as a whole works.

 59. Macroeconomics is the study of

a. individual decision makers.

thương mại quốc tế
b. international trade.
hiện tượng toàn nền kinh tế
c. economy-wide phenomena.

d. markets for large products.

trái ngược với

60. A microeconomist — as opposed to a macroeconomist — might study
vay nợ liên bang
a. the effect of borrowing by the federal government on the inflation rate.

b. the effect of rising oil prices on employment in the airline industry.

c. changes in the nation’s unemployment rate over short periods of time.

mức sống
d. alternative policies to promote higher living standards throughout the nation.
thay thế
Một nhà kinh tế vĩ mô - trái ngược với một nhà kinh tế vi mô - có thể nghiên cứu
61. A macroeconomist — as opposed to a microeconomist — might study
nông sản
a. the effect of agricultural price support programs on the cotton industry
thép hạn ngạch
b. the effect on U.S. steel producers of an import quota imposed on foreign steel

c. the effect of an increasing inflation rate on national living standards

d. the effect of an increase in the price of imported coffee beans on the U.S. coffee industry
nhập khẩu

THE ECONOMIST AS POLICY ADVISER

62. When economists are trying to explain the world, they are

a. scientists.

b. policy advisers.
lĩnh vực
c. in the realm of microeconomics rather than macroeconomics.

d. in the realm of normative economics rather than positive economics.

63. When economists are trying to help improve the world, they are

a. in the realm of positive economics rather than normative economics.

b. in the realm of macroeconomics rather than microeconomics.

c. scientists.

d. policy advisers.
64. Which of the following statements is correct about the roles of economists?

a. Economists are best viewed as policy advisers.

b. Economists are best viewed as scientists.

c. In trying to explain the world, economists are policy advisers; in trying to improve the world, they
are scientists.

d. In trying to explain the world, economists are scientists; in trying to improve the world, they are
policy advisers.
Tuyên bố chuẩn tắc
65. Normative statements are
quy định Tuyên bố chứng thực
a. prescriptive, whereas positive statements are descriptive.

b. descriptive, whereas positive statements are prescriptive.

Nhìn về quá khứ Nhìn tới tương lai
c. backward-looking, whereas positive statements are forward-looking.

d. forward-looking, whereas positive statements are backward-looking.

66. Positive statements are

a. prescriptive.

b. claims about how the world should be.

c. claims about how the world is.

d. made by economists speaking as policy advisers.

67. Positive statements are not

a. descriptive.

b. prescriptive.

c. claims about how the world is.

d. made by economists speaking as scientists.

68. Normative statements are not

a. descriptive.

b. prescriptive.

c. claims about how the world should be.

d. made by economists speaking as policy advisers.

SHORT ANSWER

1. Identify each of the following topics as being part of microeconomics or macroeconomics:

a. the impact of a change in consumer income on the purchase of luxury automobiles
b. the effect of a change in the price of Coke on the purchase of Pepsi
c. the impact of a war in the Middle East on the rate of inflation in the United States
d. factors influencing the rate of economic growth
e. factors influencing the demand for tractors
f. the impact of tax policy on national saving
g. the effect of pollution taxes on the U.S. copper industry
h. the degree of competition in the cable television industry
i. the effect of a balanced-budget amendment on economic stability
j. the impact of deregulation on the savings and loan industry
2. Which of the following statements are positive and which are normative?
a. The minimum wage creates unemployment among young and unskilled workers.
b. The minimum wage ought to be abolished.
c. If the price of a product in a market decreases, then, other things equal, quantity demanded will increase.
d. A little bit of inflation is worse for society than a little bit of unemployment.
e. There is a tradeoff between inflation and unemployment in the short run.
f. If consumer income increases, then, other things equal, the demand for automobiles will increase.
g. The U.S. income distribution is not fair.
h. U.S. workers deserve more liberal unemployment benefits.
i. If interest rates increase, then investment will decrease.
j. If welfare benefits were reduced, then the country would be better off.